Lancaster City Council sets its budget for 2025/26

Maintaining a resilient financial foundation and protecting essential services are at the heart of Lancaster City Council’s budget for 2025/26, which was agreed on Wednesday (February 26).

Like many local authorities, the city council has to deal with increases in its operating costs, along with higher interest rates, and a real-terms cut in core funding from the Government.

Following months of hard work by officers and councillors, a balanced budget has been achieved for 2025/26 without use of reserves.

The city council’s component of Council Tax, its most stable source of funding, will increase by an average of 2.99%, or 14p a week, for a Band D property. Once again, this increase is lower than the percentage hikes imposed by other authorities that receive the majority of residents’ council tax payments.

In the next financial year, Band D property residents will pay an average of £5.08 a week (£264.30 a year) to the city council for the services which it provides.

As 80% of the district's homes are in the lowest bands (A to C) the actual increase will be lower for most households. The council has also agreed to continue 100% Council Tax Support benefit for those on the lowest incomes, one of a minority of local authorities in England to do so.

Councillor Tim Hamilton-Cox, cabinet member with responsibility for finance, said: “As with all public services, the city council remains under pressure financially but is determined to protect the vital services it provides for the community.

“With those significant challenges in mind I can be satisfied that we have delivered a balanced budget, maintained the range of our services and external grants, and ensured that we can continue to invest in the future of our district.

“A majority of councillors supported the £27m (which includes over £6m of external funding) programme of capital investment in 2025/26. The programme includes replacement of half of the refuse collection vehicle fleet in order to maintain reliability of service; investment in the council’s existing assets to reduce operating costs; and in new assets to generate new long-term income streams for the council.”

	2024/25	2025/26	Increase
	£	£	£	%
Lancashire County Council	1,653.29	1,735.79	82.50	4.99
Lancashire Police & Crime	263.40	277.40	14	5.32
Lancashire Fire Authority	84.73	89.73	5	5.90
Lancaster City Council	256.63	264.30	7.67	2.99
Total	2,258.05	2,367.22	109.17	4.83

In addition, residents living in areas with a parish council pay an additional precept to their parish council.

 

Last updated: 28 February 2025